ARTT 14 3/4
Wireless internet. Not a day-trade....it's an investment. I know it doesn't really fit in with the momo's but FWIW, read on.
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Outlook for wireless internet
-- [B] IDC forecasts $7.4 bln fixed wireless market by 2003 --
By Mike Mason, Bridge News
San Francisco--Dec 13--International Data Corp. said it expects the US market for services delivered over broadband fixed wireless technologies will skyrocket from $767 million in 1999 to $7.4 billion by 2003, in a report issued Monday. Holders of broadband fixed wireless licenses include Teligent, in the 24 GHz spectrum; NextLink Communications in the 28 GHz local multi-point distribution service (LMDS) frequency; and WinStar, Advanced Radio Telecom and AT&T in the 38 GHz spectrum.
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DD on ARTT
Please do your own DD if you plan investing in ARTT.
Advanced Radio Telecom Corp. provides wireless broadband telecommunications services using microwave transmissions in the 38GHz band of the radio spectrum throughout the U.S.
artelecom.com
Advanced Radio Telecom Corp. headquartered in Bellevue, Wash., is a provider of local Internet access services at speeds up to 100Mbps. ART currently owns and operates broadband wireless metropolitan area networks in San Jose, Calif., Seattle, Portland, Ore., and Phoenix with plans to expand to 40 of the top 50 U.S. markets in the next few years. Qwest Communications International Inc. is ART's strategic partner with Qwest Private Line, ART Broadband Services, co-marketing and co-location agreements. ART investors include Qwest and a number of high tech investment funds including Oak Investment Partners, MeriTech Capital Partners, Accel Partners, Brentwood Venture Capital, Worldview Technology Partners, Columbia Capital, Advent International, GE Equity, KPN, Sonera, Bessemer Venture Capital, and Adams Capital Management.
ART has a nationwide footprint of 38GHz spectrum licenses in the United States, and owns 26GHz and/or 38GHz spectrum licenses in the United Kingdom and several Scandinavian countries. ARTT owns 90 of 100 markets for 38ghz spectrum(licensed wireless service).
They are deploying now in cities like San Jose, CA. This is a line of site, 100MB ring with antennas on rooftops, routers into the offices, and a central switch to a glass connection to the internet. A customer can get T1+ speeds at competitive prices without the phone company's involvement. Long term, as wireless modems push into the gigabit range (coming FAST) and if ARTT has been successful at gaining customers at the t1 - 100Mb level, ARTT should be well positioned as a high bandwidth, wireless service provider of internet, private WAN via secure internet, telephony, and video services to the business market.
And if the line of sight requirement of the 38ghz band can be solved for (and I know that companies are working now to solve), or other, more robust wireless technology can be deployed (again, certain it is being worked on), ARTT can then branch into home office and eventually the home.
Remember when cellular phones were only for business because the cost was just too high? I can use my cell phone for long distance today at the same rate as home (+/- a penny or two) AND make local calls cheaper than at home.
Eventually, wireless broadband will negate the need for glass to the house, and most certainly will make AT&T think twice about investing billions to lay glass or upgraded coax (whose current bandwidth is limited, even if better today than DSL over copper) to the home.
One of the advantages of the 38 GHz band is the innovative licensing structure the FCC has established versus other unlicensed spectrums. Rather than requiring individual wireless "link" licenses, the FCC established area licenses. As a licensed operator in the 38 GHz band, ART has an exclusive right to use one or more 100 MHz blocks of spectrum.
No other carrier or wireless provider can use the specified frequency within a service area at the 38 GHz licensed spectrum. In comparison, many unlicensed frequencies may have competing devices or providers using the same spectrum which causes interference or security problems (such as with cordless phones).
Current 38 GHz radio systems support speeds up to OC-3 (155Mbps). ART's 38 GHz radio systems are engineered with a bit error rate of 10-13 - the same as fiber optics technology and superior to copper.
And for the comparisons: (we'll use one, using more only builds the case)
TGNT - Teligent Inc.
Current Price: $63 7/8
Current Market Cap: $3444M
What: (from YHOO)
TGNT is a full-service, integrated communications company that offers small and medium-sized business customers local, long-distance, high-speed data and dedicated Internet services over its Digital SmartWave(TM) local network. For the six months ended 6/99, revenues rose from $241 thousand to $5.5 million. Net loss rose from $97.7 million to $231.6 million. Results reflect the Co.'s first quarter of commercial communication services operations, offset by higher costs of network operations.
Side by Side
Revenue (TSM) ARTT : $565K
Revenue (TSM) TGNT : $5500K
Loss (TSM) ARTT : $43M
Loss (TSM) TGNT : $232M
Market Cap ARTT: $440M
Market Cap TGNT: $3444M
For some thoughts:
Which company has secured bandwidth rights by license? ARTT.
Which company must compete in unlicensed spectrums? TGNT.
Who has the link with "ride the light" QWST who wants "any movie, any time, any where"? ARTT.
Who will be able to capitalize on the coming 1Gb data rate wireless modems as they have built a customer base in larger office complexes of people wanting better service and an integrated supplier? ARTT.
Graphical representation ARTT and TGNT
iqc.com
Good Luck!
B |
